RASHTRIYA ISPAT NIGAM LTD CIN NO:U27109AP1982GOI TENDER FOR CASH MANAGEMENT SERVICES

Transcription

1 VIZAG STEEL PRIDE OF STEEL RASHTRIYA ISPAT NIGAM LTD CIN NO:U27109AP1982GOI TENDER NOTICE NO. : VSP/FIN/Corporate Treasury/15-16/01, Dt. 01/07/2015 TENDER FOR CASH MANAGEMENT SERVICES Rashtriya Ispat Nigam Ltd., Visakhapatnam Steel Plant invites Sealed Tenders in the prescribed form from Scheduled Commercial Banks for providing Cash Management Service (CMS). Interested Banks may obtain the tender document from the address given under. Tender Document, terms and conditions of Tender are also available at our website: in Tenders/Others for down loading and submission of Offer. Last date for submission of Tender Document : 15 th July, 2015 at 11 AM Date of opening of Tender (Commercial Bid) : 15 th July 2015 at 12 Noon Name Designation : P.SRINIVASA RAO : Asst General Manager (F&A) Address for Communication RASHTRIYA ISPAT NIGAM LTD. VISAKHAPATNAM STEEL PLANT CORPORATE TREASURY FINANCE & ACCOUNTS DEPARTMENT Room no. 123; ADMINISTRATION BUILDING VISAKHAPATNAM PHONE: Fax: cash.fin@vizagsteel.com 1

2 1. Preamble: RASHTRIYA ISPAT NIGAM LIMITED NOTICE INVITING QUOTATION FOR CASH MANAGEMENT SERVICES TENDER DOCUMENT Rashtriya Ispat Nigam Limited, Visakhapatnam Steel Plant, herein after referred as RINL, is an Integrated Steel Plant, manufacturing the Iron and Steel Products and is strategically situated near the Port at VISAKHAPATNAM and with annual sales turnovers for the past three years as detailed below Year Sales turnover ( Rs in Crs) The Company has expanded its capacity from 3 MT of Liquid Steel to 6.3 MT at estimated cost of Rs Crs. All the expansion units are commissioned and they are under stabilization. The company using Cash Management services (herein after referred as CMS) from banks for effecting transfer of sales collection proceeds through a network of Branch Sales Offices (herein after referred as Branches) located in 23 cities in the Country and 6 Consignment Sales Agencies (herein after referred as CSA).The list of outlets is given at Annexure I along with respective branch and CSA turnover for the FY The composition of CMS collection and RTGS collection for the year and projected Domestic sales turnover for the year to is as follows: Type of collection Amount in Crs Percentage to total collection CMS collection % RTGS collection % Total collection % Projected Domestic sales turnover: Description of sales turnover Projected Domestic sales turnover( Rs in Crs) The Company invites offers for CMS from the Banks meeting the eligibility criteria set out in this Tender Document. 2. Objective: The objective of availing Cash Management Service (CMS) is to transfer Funds from the Branches and CSAs of RINL to its Head Quarters at Visakhapatnam without any transit time i.e. crediting on Day Zero at the designated account at Visakhapatnam and make payments to customers and suppliers by way of credit to their Bank Accounts by electronic mode such as National Electronic Fund Transfer (herein after referred as NEFT), Real Time Gross Settlement (herein after referred as RTGS) or any other mode available from time to time. 2

3 3. Method of Submission of Tender: Banks are requested to submit their offer in 2 Parts i.e. I. Part-A Commercial Bid consisting of a) details relating to the facilities available and the credentials of the Bank for each of the eligibility criteria supported by relevant proof. b) Complete set of this document duly signed as a token of acceptance of these conditions. The set is to be submitted without filling Annexure II i.e. the price Bid, only blank set is to be signed and stamped as a token of acceptance of the terms and Conditions. II. Part-B Price Bid consisting of Price/Bank charges in the format annexed to this document. Part-B at Annexure-II shall not contain any conditions except price. Part-A and Part-B are to be kept in two separate envelopes sealed and super-scribed on the envelope in the case of Part-A Commercial Bid and in the case of Part-B Price Bid for identification without opening the envelope. Both the above envelopes should be kept in a separate third envelope super-scribing quotation for Cash Management Services and sent to AGM(F&A), Corporate Treasury, Room No. 123, Administrative Building, Rashtriya Ispat Nigam Ltd., Visakhapatnam Steel Plant, Visakhapatnam , so as to reach on or before A M. of 15 th July Tenders received in other than sealed cover shall be rejected. 4. Eligibility Criteria for selecting Bank: a) Any Scheduled Commercial Bank having presence all over India and having net worth of minimum Rs.1200 Crs and Capital Adequacy Ratio (CAR) as per RBI norms i.e., 9% as per Audited Balance Sheet of FY Bank has to furnish a certificate from a Practicing Chartered Account to this effect. In case the audited financials are not available for the year , the same may be furnished for the financial year , giving the reasons for non-availability of the financials for the year b) The Bank shall have its Branch at Visakhapatnam. In case of more than one branch, one of the Branches shall be identified as Designated Branch which will have full responsibility for operating the CMS services. c) The Bank shall have its branches in at least 20 locations given in Annexure -1, and arrangement with any other Associate Banks is permissible for the remaining locations. Details of Associate Bank arrangements shall be clearly brought out in the Commercial Bid. The Bank should have inter-connectivity among most of its branches and facilities such as NEFT/RTGS/ e-payment / e-receipt/e Tax etc. d) The Bank should have provided CMS services to Public Sector Undertakings or any Pvt. Sector business entities having CMS collection turnover of not less than Rs. 3,000 Crs during last financial year (FY ) and such service was rendered for a period of not less than 2 years during last five years. The banks shall furnish the details of CMS services provided and also letters from the companies that the services provided by them are satisfactory. e) The bank shall be an authorized bank to collect statutory payments like Income tax, sales tax, central excise duty, customs duty, service tax etc. through online banking facility. 3

4 5. PART-A COMMERCIAL BID: Terms & Conditions: a) The branches of the Bank shall arrange to pick-up instruments i.e., cheques, demand drafts, instructions for payment through NEFT/RTGS etc., from branches of RINL on daily basis by A.M. The instruments picked up shall be suitably acknowledged by the authorized representative of the Bank. Any default in picking up instruments shall attract a penalty at Bank s Base rate plus 100 basis points per annum on average transfer of funds in that month from that Branch of RINL for the number of days delayed in transmission of funds. b) In case of locations managed by Consignment Sales Agent as per the list placed at Annexure-I, Authorized Representatives of CSAs would deposit Demand Drafts/Cheques at the counters of the Banks before 11.00AM.The Authorized Executive of the Bank Branch shall acknowledge the receipt of the instruments. c) The bank branches will also receive funds directly by means of NEFT, RTGS, Direct Credit, e-receipt any other mode permissible etc. to a separate account opened for each branch like virtual account or any other name for E-Receipts from customers. Bank should provide details like name of the customer in the RTGS account and also by as and when amount is credited. This account is to be provided without any extra cost. These amounts are also to be transferred to the credit of RINL A/C at Visakhapatnam within the time permissible by Reserve Bank of India. Any delay will attract penalty at Bank s Base Rate plus 100 basis points per annum for the number of days delayed. d) As the funds transferred by the Bank to Visakhapatnam will be used by RINL on the same day on estimation basis, the designated Branch of the Bank at Visakhapatnam should sanction temporary clean/unsecured Over Draft limit up to the extent of shortfall. Bank may charge interest at their Base Rate only on the day end debit balance. Cheques/NEFT/RTGS and any other Payment Advice issued by RINL shall not be dishonored for want of funds. However, RINL keeps the day end debit balance to a maximum of Rs. 125 Crs. The Bank also has to sanction clean/unsecured Over Draft intra-day limit of Rs 500 Crs including day end balance limit of Rs 125 Crs to take care of the volume of transactions during the day. This facility is to be provided purely on unsecured basis. e) The total value of instruments i.e., Cheques, Demand Drafts etc., collected/ deposited at various branches of the bank are to be credited to RINL A/c in the Designated Branch at Visakhapatnam before 4.00 P.M. on the same day on all working days irrespective of clearing status of the Instruments deposited by RINL branches. f) The bank also shall arrange to pick-up advices for NEFT/RTGS payments, from Corporate Treasury Section, Administrative Building, Visakhapatnam Steel Plant, Visakhapatnam on every working day at 5.00 p.m. g) The bank may charge interest for returned Instruments due to dishonor or any other reason attributable to RINL at their Base Rate. No other penalty/ penal charges shall be debited to the RINL account due to dishonor of cheques/dds presented. 4

5 h) The Bank branches shall furnish Management Information Reports on daily basis latest by 4.00 P M to the Branches of RINL at respective locations showing Cheques/Demand Drafts etc., deposited, their clearing status, details of returned cheques, amount transferred to Visakhapatnam and a consolidated report on a fortnightly basis, summary reports daily and fortnightly to RINL, Head Quarters at Visakhapatnam, statement of bank accounts on fortnightly basis and other reports that are desired by RINL. The reports shall be furnished in mutually agreed formats including soft copies of the reports in the format required by RINL. If any additional information/fields are required to be incorporated in the report at a later state, the same are to be provided by the Bank. i) Similarly, in case of NEFT, RTGS, e-receipt, Direct Credit etc., details of customer/name of the remitter, document references are to be furnished by the bank branch to the branch office of RINL, at respective location and also to RINL, Visakhapatnam furnishing details in the format required by RINL. j) All payments executed by way of RTGS/NEFT/e Tax/e - Payment or any other payments/fund transfer should be extended free of Cost. k) All Demand Drafts / Bankers Cheque and Continuous stationary for issue of cheques shall be issued at free of Cost. l) The Bank shall provide e-payments facility to RINL through NEFT/RTGS or any other mechanism at all the locations to effect payments to customers/suppliers spread all over the country as per instructions on daily basis. m) In case of NEFT/RTGS or other online facility, the credit to Customer/supplier Accounts shall be affected within the time period permissible by Reserve Bank of India. In case of any delay in crediting the Customer s/supplier s Account and if the same is attributable to the Bank, the Bank shall keep RINL indemnified on this account. The bank shall also remain responsible for wrong remittances due to their own fault and indemnify RINL on this account. n) In case of any mismatch between Account Number, Party s Name and Banks Branch Code, the payment instruction shall be returned to RINL for rectification. o) The Bank shall provide the facility to view, download the account statements etc., from respective locations of RINL. p) The branches of Bank shall cater to the requirements of RINL branches at respective locations including furnishing of Management Information Reports. For this purpose each branch of RINL, shall be treated as a separate unit while maintaining the unique identity for RINL, as a whole. q) Bank charges, as per Part-B (Price Bid), shall be levied by the designated branch of the Bank on monthly basis in respect of CMS services with necessary certification in the prescribed format for Service Tax and cess on service tax, if any. r) The Services envisaged under this contract is for a period of three years at the quoted rates with the same terms and conditions of the agreement subject to satisfactory performance of the services by the Bank. The contract may be extended for further period of one year with same terms and conditions with the mutual agreement of both the parties. s) The Contract shall be liable for cancellation by RINL, without any prior notice if the services are found not satisfactory or otherwise deficient in operation. 5

6 t) The contract can be terminated/short closed by giving one month notice by RINL, in case better and more efficient products are available in the market or for any other reason. RINL is not bound to give any reason for short closure. u) In case the of withdrawal of CMS services by the Bank, the Bank will be liable to reimburse RINL at the rate of Rs. 3,00,000/-(Rupees three Lakhs only) per month for the period for which services are not rendered either for complete month or part thereof. v) RINL, reserves its right to accept or reject any offer for reasons internally considered by the company. RINL is under no obligation to inform the reasons for such rejection to the bank. w) The bank shall nominate a Senior Executive not below the rank of Dy. General Manager supported by competent team to provide all services under CMS contract, for effective co-ordination and attending to the requirements informed from time to time by RINL at Vishakhapatnam and one Senior Executive at all the Location of Branches/CSAs of RINL for effective Co-ordination during the contract period. x) In case of any changes in RBI regulations etc. the bank shall bring to the notice of RINL for effecting changes in the terms & conditions. y) The bidding banks are to provide the contact person for the tender purpose along with Phone No. & address. 6. Conditions pertaining to Part-B (Price Bid): a) In case of discrepancy between words and figures, rate quoted in words will be final and binding. b) The estimated funds to be transferred from branches are provided at Annexure - II, Price Bid, is only indicative for the purpose of evaluation of offers. The actual amounts to be transferred may vary depending upon the marketing distribution strategy of the company. No claim whatsoever shall be entertained on account of variation. c) Bank shall charge for the services actually rendered as per price bid. d) Any of the above branches of RINL may be withdrawn or new locations may be introduced during operation of contract. Rate quoted for the existing location shall be applicable to new location also. e) Outstation instruments deposited in above locations shall be credited at RINL Account in designated branch at Visakhapatnam within a period of 5 days from the date of deposit or maximum permissible time allowed by RBI, whichever is lower. Value of such outstation instruments deposited by RINL (including the branches of RINL) is estimated to be around Rs. 50 Crs per annum. No separate collection charges will be leviable. 6

7 7. Procedure for Award of Contract: a) Part A - Commercial bid will be opened at 12 noon on 15th th July, 2015 in the presence of bank representative who choose to be present. b) Part B - Price Bids of those Banks meeting the eligibility criteria will be opened in the presence of Bank representatives who choose to be present. Information regarding the opening of price bid will be informed by phone/ separately. c) All formalities such as Account Opening, finalizing of MIS formats etc., shall be completed within 15 days of issue of Letter of Intent(LOI). d) CMS and other services at some Branch locations shall commence from initially for smooth transition from the existing service provider to the new service provider. However full fledged operations would be started from for all locations and the period of contract is considered three years w.e.f i.e. up to The contract may be extended for further period of one year with same terms and conditions with the mutual agreement of both the parties. e) Evaluation: Only one Bank offering the lowest price would be selected for this contract. The lowest price would be decided on the combined value given at Annexure-II. In case of equal offers, the order of preference is as follows: i. Among the PSU Banks and Private Sector Banks, PSU Banks will be preferred. ii. Among the PSU Banks, banks with high net worth will be preferred. iii. Among the Private Sector Banks, banks with high net worth will be preferred. f) RINL will sign the CMS agreement according to the enclosed format only placed at Annexure - III. No other documents would be executed pertaining to CMS. However, documents pertaining to working Capital /OD may be executed, if necessary. All the terms of this tender also form part of the agreement. 8. Settlement of Disputes: Dispute, if any, in interpretation of the terms shall be settled by mutual discussions. Any Legal issues shall be subject to the jurisdiction of Courts at Visakhapatnam. Date : Signature : Place : Name : Designation : Name of the Bank : 7

8 Annexure-1 Region wise network of RINL Sl.No Location Branch/CSA Actual CMS collection turnover(except CSA s) during the year (Rs in Crs) Eastern region 1 BHUBANESWAR Branch KOLKATA Branch PATNA Branch 34 10(estimated) 4 JAMSHEDPUR Consignment Sales Agent(CSA) 5 GUWAHATI Consignment Sales Agent(CSA) Northern Region 6 AGRA Branch 19 7 CHANDIGARH Branch NEW DELHI Branch 34 9 FARIDABAD Branch GHAZIABAD Branch JAIPUR Branch LUDHIANA Branch KANPUR Branch DEHARADUN Branch 9 15 DAMTAL Consignment Sales Agent(CSA) VARANASI Consignment Sales 16 Agent(CSA) Western Region 17 MUMBAI Branch AHMADABAD Branch INDORE Branch 2 20 NAGPUR Branch PUNE Branch BHOPAL Consignment Sales Agent(CSA) JABALPUR Consignment Sales Agent(CSA) 23 Southern Region 24 BANGALORE Branch COCHIN Branch COIMBATORE Branch CHENNAI Branch 266 ANDHRA REGION 28 HYDERABAD Branch 267 BSO - HQ SALES - 29 VIZAG 30 SBG - BYPRODUCTS - VIZAG Branch 1347 Branch 10 Total 5231 Note: In case of CSA s, turnover provided on Estimation basis. 10(estimated) 10(estimated) 10(estimated) 10(estimated) 10(estimated) 8

9 Annexure-II Sno Part-B : Price Bid Description Estimated CMS collection per annum (Rs.in Crs) All inclusive rate per Rs 1000/- Rs. in figures Rs in words Total Amount In Rupees A B C D E (C*E*10000) 1 2 Charges for Estimated CMS collection turnover from Branches (A) Interest at bank s base rate on daily average utilization of Rs. 25 Crs for one year (B) 8600 xxxxxxxxxxx xxxxxxxx Total of CMS charges & Interest (A) + (B) for one year yyyyyyyy 9

10 CASH MANAGEMENT SERVICES AGREEMENT Annexure -III This Agreement is made on (Date) (Bank) having its Head Office at (address) and Branch at Visakhapatnam (address) and Rashtriya Ispat Nigam Limited (hereafter referred as Company), having its registered office at Visakhapatnam Steel Project, Administrative Building Visakhapatnam Bank has offered the company its services known as Cash Management Services under which the Bank will agree to present in clearing account payee instruments and enable the company to get credit for the amount of these instruments on Day Zero. The objective of availing Cash Management Service (CMS) is to transfer Funds from the Branches and CSAs of RINL to its Head Quarters at Visakhapatnam without any transit time i.e. crediting on Day Zero at the designated account at Visakhapatnam and make payments to customers and suppliers by way of credit to their Bank Accounts by electronic mode such as National Electronic Fund Transfer (herein after referred as NEFT), Real Time Gross Settlement (herein after referred as RTGS) or any other mode available from time to time. The Bank agrees that the above mentioned services will be made available to the company in the manner and subject to the terms and conditions set out below. a) The branches of the Bank shall arrange to pick-up instruments ie, cheques, demand drafts, instructions for payment through NEFT/RTGS etc., from branches of RINL on daily basis by A.M. The instruments picked up shall be suitably acknowledged by the authorised representative of the bank. Any default in picking up instruments shall attract a penalty at Bank s Base rate plus 100 basis points per annum on average transfer of funds in that month from that Branch of RINL for the number of days delayed in transmission of funds. b) In case of locations managed by Consignment Sales Agent as per the list placed at Annexure-I, Authorized Representatives of CSAs would deposit Demand Drafts at the counters of the Banks before 11.00AM.The Authorized Executive of the Bank Branch shall acknowledge the receipt of the instruments. c) The bank branches will also receive funds directly by means of NEFT, RTGS, Direct Credit, e-receipt, any other mode permissible etc. to a separate account opened for each branch like virtual account or any other name for E-Receipts from customers. Bank should provide details like name of the customer in the RTGS account and also by as and when amount is credited. This account is to be provided without any extra cost. These are also to be transferred to the credit of RINL A/C at Visakhapatnam within the time permissible by Reserve Bank of India. Any delay will attract penalty at Bank s Base Rate plus 100 basis points per annum for the number of days delayed. d) As the funds transferred by the Bank to Visakhapatnam will be used by RINL on the same day on estimation basis, the designated Branch of the Bank at Visakhapatnam should sanction temporary clean/unsecured Over Draft limit up to the extent of shortfall. Bank may charge interest at their Base Rate on the day end debit balance. Cheques/NEFT/RTGS and any other Payment Advice issued by RINL shall not be dishonored for want of funds. However, RINL keeps the day end debit balance to a maximum of Rs. 125 Crs. The Bank also has to sanction clean/unsecured overdraft intraday limit of Rs 500 Crs including day end balance limit of Rs 125 Crs to take care of the volume of transactions during the day. This facility is to be provided purely on unsecured basis. e) The total value of instruments i.e., Cheques, Demand Drafts etc., collected/ deposited at various branches of the bank are to be credited to RINL A/c in the Designated Branch at Visakhapatnam before 4.00 P.M. on the same day on all working days irrespective of clearing status of the Instruments deposited by RINL branches. 10

11 f) The bank also shall arrange to pick-up advices for NEFT/RTGS payments, from Corporate Treasury Section, Administrative Building, Visakhapatnam Steel Plant, Visakhapatnam on every working day at 5.00 p.m. g) The bank may charge interest for returned Instruments due to dishonor or any other reason attributable to RINL at their Base Rate. No other penalty/ penal charges shall be debited to the RINL account due to dishonor of cheques/dds presented. h) The Bank branches shall furnish Management Information Reports on daily basis latest by 4.00 P M to the Branches of RINL at respective locations showing Cheques/Demand Drafts etc., deposited, their clearing status, details of returned cheques, amount transferred to Visakhapatnam and a consolidated report on a fortnightly basis, summary reports daily and fortnightly to RINL, Head Quarters at Visakhapatnam, statement of bank accounts on fortnightly basis and other reports that are desired by RINL. The reports shall be furnished in mutually agreed formats including soft copies of the reports in the format required by RINL. If any additional information/fields are required to be incorporated in the report at a later stage, the same are to be provided by the Bank. i) Similarly, in case of NEFT, RTGS, e-receipt, Direct Credit etc., details of customer/name of the remitter, document references are to be furnished by the bank branch to the branch office of RINL, at respective location and also to RINL, Visakhapatnam furnishing details in the format required by RINL. j) All payments executed by way of RTGS/NEFT/e Tax/e - Payment or any other payments/fund transfer should be extended free of Cost. k) All Demand Drafts / Bankers Cheque and Continuous stationary for issue of cheques shall be issued at free of Cost. l) The Bank shall provide e-payments facility to RINL through NEFT/RTGS or any other mechanism at all the locations to effect payments to customers/suppliers spread all over the country as per instructions on daily basis. m) In case of NEFT/RTGS or other online facility, the credit to Customer/supplier Accounts shall be affected within the time period permissible by Reserve Bank of India. In case of any delay in crediting the Customer s/supplier s Account and if the same is attributable to the Bank, the Bank shall keep RINL indemnified on this account. The bank shall also remain responsible for wrong remittances due to their own fault and indemnify RINL on this account. n) In case of any mismatch between Account Number, Party s Name and Banks Branch Code, the payment instruction shall be returned to RINL for rectification. o) The Bank shall provide the facility to view, download the account statements etc., from respective locations of RINL. p) The branches of Bank shall cater to the requirements of RINL branches at respective locations including furnishing of Management Information Reports. For this purpose each branch of RINL, shall be treated as a separate unit while maintaining the unique identity for RINL, as a whole. q) Bank charges, as per Part-B (Price Bid) shall be levied by the designated branch of the Bank on monthly basis in respect of CMS services with necessary certification in the prescribed format for Service Tax and Cess on service tax, if any. r) The Services envisaged under this contract is for a period of three years w.e.f at the quoted rates with the same terms and conditions of the agreement subject to satisfactory performance of the services by the Bank. However the contract 11

12 may be extended for a further period of one year with same terms and conditions with mutual agreement of both the parties. s) The Contract shall be liable for cancellation by RINL, without any prior notice if the services are found not satisfactory or otherwise deficient in operation. t) The contract can be terminated/short closed by giving one month notice by RINL, in case better and more efficient products are available in the market or for any other reason. RINL is not bound to give any reason for short closure. u) In case the of withdrawal of CMS services by the Bank, the Bank will be liable to reimburse RINL at the rate of Rs. 3,00,000/-(Rupees three Lakhs only) per month for the period for which services are not rendered either for complete month or part thereof. v) RINL, reserves its right to accept or reject any offer for reasons internally considered by the company. RINL is under no obligation to inform the reasons for such rejection to the bank. w) The bank shall nominate a Senior Executive not below the rank of Dy. General Manager for effective co-ordination and attending to the requirements informed from time to time by RINL at Vishakhapatnam and one Senior Executive at all the Location of Branches/CSAs of RINL for effective Co-ordination during the contract period. x) In case of any changes in RBI regulations etc. the bank shall bring to the notice of RINL for effecting changes in the terms & conditions. y) Any legal issues shall be subjected to jurisdiction of Courts at Visakhapatnam. Terms and conditions set out in tender document No. VSP/FIN/Corporate Treasury/15-16/01, dt. 01/07/2015 forms part of this agreement. The terms and conditions setout in this tender document were already accepted by the bank. In case of conflict between this agreement and tender document, tender document shall prevail over this agreement. IN WITNESS WHERE of the parties shall have hereunto set and subscribed their respective hands and seal at the day, month and year first herein above written. SIGNED, SEALED and delivered by The within named the Bank Through its authorized Signatory Sri, Manager, Bank, Visakhapatnam In the presence of SIGNED, SEALED and delivered by The within named the company Sri, DGM (F&A) I/c, M/s. Rashtriya Ispat Nigam Visakhapatnam In the presence of